Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2021
  • Article
  • Journal of Accounting Research

Cash-for-Information Whistleblower Programs: Effects on Whistleblowing and Consequences for Whistleblowers

By: Aiyesha Dey, Jonas Heese and Gerardo Pérez Cavazos
  • Format:Print
ShareBar

Abstract

We study the effect of financial incentives on whistleblowing and the consequences for whistleblowers under the cash-for-information program of the False Claims Act (FCA). Exploiting appeals-court decisions that increase financial incentives for whistleblowing, we find that greater incentives increase the number of lawsuits filed with the regulator, the regulator’s investigation length, the percentage of intervened lawsuits, and the percentage of settled lawsuits. Using information from lawsuits, a professional networking site, and background checks for up to 1,168 whistleblowers, we find that whistleblowers’ long-term annual income decreases by approximately 8.6% or $6,500 but do not find evidence of social costs. In comparison, whistleblowers can expect to receive approximately $140,000 for blowing the whistle. Overall, our results suggest that the FCA cash-for-information program helps expose corporate misconduct and helps compensate whistleblowers for their income loss.

Keywords

Whistleblowers; Cash-for-information Whistleblower Programs; False Claims Act; Corporate Misconduct; Consequences For Whistleblowers; Crime and Corruption; Information; Cost

Citation

Dey, Aiyesha, Jonas Heese, and Gerardo Pérez Cavazos. "Cash-for-Information Whistleblower Programs: Effects on Whistleblowing and Consequences for Whistleblowers." Journal of Accounting Research 59, no. 5 (December 2021): 1689–1740.
  • SSRN
  • Find it at Harvard

About The Authors

Aiyesha Dey

Accounting and Management
→More Publications

Jonas Heese

Accounting and Management
→More Publications

More from the Authors

    • February 2025
    • Faculty Research

    Managing EPS at Stanley Black & Decker?

    By: Jonas Heese, Joseph Pacelli, Yuan Zou and James Barnett
    • January 2025
    • Accounting Review

    Enterprise Resource Planning (ERP) System Implementations and Corporate Misconduct

    By: Jonas Heese and Joseph Pacelli
    • December 2024
    • Review of Financial Studies

    Proxy Advisory Firms and Corporate Shareholder Engagement

    By: Aiyesha Dey, Austin Starkweather and Joshua White
More from the Authors
  • Managing EPS at Stanley Black & Decker? By: Jonas Heese, Joseph Pacelli, Yuan Zou and James Barnett
  • Enterprise Resource Planning (ERP) System Implementations and Corporate Misconduct By: Jonas Heese and Joseph Pacelli
  • Proxy Advisory Firms and Corporate Shareholder Engagement By: Aiyesha Dey, Austin Starkweather and Joshua White
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.